Endeavour Mining to buy Teranga Gold, creating top 10 gold miner

Agbaou gold mine, in Côte d’Ivoire. (Image Courtesy of Endeavour Mining.)

Canada’s Endeavour Mining (TSX: EDV), already West Africa’s top gold producer, has agreed to buy Teranga Gold (TSX: TGZ) in an all-share deal worth C$2.44 billion ($1.86 billion) that would create a top 10 gold producer aiming to list in London.

Endeavour is offering 0.470 of its own shares for each Teranga share, a 5.1% premium to Teranga’s closing price on Friday.

The combined company will produce about 1.5 million ounces of gold a year from several African operations, which would position it among the world’s largest gold producers.

Endeavour shareholders will end up with 66% of the combined entity, with Teranga shareholders holding the remaining 34%. Teranga will get three seats on the board to Endeavour’s seven.

La Mancha, the vehicle which Egyptian billionaire Naguib Sawiris holds his stake in Endeavour, will invest a further $200 million into the combined miner, leaving it with a 19% stake. 

The deal is expected to close in the first quarter of 2021.

More to come…

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